Question

Direct Materials, Direct Labor, and Factory Overhead Cost Variance Analysis Mackinaw Inc. processes a base chemical...

Direct Materials, Direct Labor, and Factory Overhead Cost Variance Analysis

Mackinaw Inc. processes a base chemical into plastic. Standard costs and actual costs for direct materials, direct labor, and factory overhead incurred for the manufacture of 4,400 units of product were as follows:

Standard Costs Actual Costs
Direct materials 5,700 lb. at $5.40 5,600 lb. at $5.20
Direct labor 1,100 hrs. at $17.60 1,130 hrs. at $18.00
Factory overhead Rates per direct labor hr.,
based on 100% of normal
capacity of 1,150 direct
labor hrs.:
Variable cost, $3.10 $3,380 variable cost
Fixed cost, $4.90 $5,635 fixed cost

Each unit requires 0.25 hour of direct labor.

Required:

a. Determine the direct materials price variance, direct materials quantity variance, and total direct materials cost variance. Enter a favorable variance as a negative number using a minus sign and an unfavorable variance as a positive number.

Price variance $
Quantity variance $
Total direct materials cost variance $

b. Determine the direct labor rate variance, direct labor time variance, and total direct labor cost variance. Enter a favorable variance as a negative number using a minus sign and an unfavorable variance as a positive number.

Rate variance $
Time variance $
Total direct labor cost variance $

c. Determine variable factory overhead controllable variance, the fixed factory overhead volume variance, and total factory overhead cost variance. Enter a favorable variance as a negative number using a minus sign and an unfavorable variance as a positive number.

Variable factory overhead controllable variance $
Fixed factory overhead volume variance $
Total factory overhead cost variance $

Homework Answers

Answer #1

a)

Price variance = Change in price * actual quantity

= (5.40 - 5.20)*5600 = 0.20*5600 = 1120 (F)

Quantity variance = Change in quantity * Standard price

= (5700-5600)*5.40 = 100*5.40 = 540 (F)

Total direct materials cost variance = 5700*5.4 - 5600*5.2

= 30780 - 29120 = 1660 (F)

b)

Rate variance = Change in rate * actual hours

= (17.60-18)*1130 = 0.4*1130 = 452 (U)

Time Variance = Change in hours* standard rate

= (1100 -1130)*17.6 = 30*17.6 = 528 (U)

Total direct labor cost variance = 1100*17.6 - 1130*18

= 19360 - 20340 = 980 (U)

Know the answer?
Your Answer:

Post as a guest

Your Name:

What's your source?

Earn Coins

Coins can be redeemed for fabulous gifts.

Not the answer you're looking for?
Ask your own homework help question
Similar Questions
Direct Materials, Direct Labor, and Factory Overhead Cost Variance Analysis Mackinaw Inc. processes a base chemical...
Direct Materials, Direct Labor, and Factory Overhead Cost Variance Analysis Mackinaw Inc. processes a base chemical into plastic. Standard costs and actual costs for direct materials, direct labor, and factory overhead incurred for the manufacture of 7,200 units of product were as follows: Standard Costs Actual Costs Direct materials 9,400 lb. at $5.10 9,300 lb. at $5.00 Direct labor 1,800 hrs. at $18.20 1,840 hrs. at $18.40 Factory overhead Rates per direct labor hr., based on 100% of normal capacity...
Direct Materials, Direct Labor, and Factory Overhead Cost Variance Analysis Mackinaw Inc. processes a base chemical...
Direct Materials, Direct Labor, and Factory Overhead Cost Variance Analysis Mackinaw Inc. processes a base chemical into plastic. Standard costs and actual costs for direct materials, direct labor, and factory overhead incurred for the manufacture of 6,000 units of product were as follows: Standard Costs Actual Costs Direct materials 7,800 lb. at $5.60 7,700 lb. at $5.50 Direct labor 1,500 hrs. at $17.70 1,530 hrs. at $18.10 Factory overhead Rates per direct labor hr., based on 100% of normal capacity...
Direct Materials, Direct Labor, and Factory Overhead Cost Variance Analysis Mackinaw Inc. processes a base chemical...
Direct Materials, Direct Labor, and Factory Overhead Cost Variance Analysis Mackinaw Inc. processes a base chemical into plastic. Standard costs and actual costs for direct materials, direct labor, and factory overhead incurred for the manufacture of 5,200 units of product were as follows: Standard Costs Actual Costs Direct materials 6,800 lb. at $6.00 6,700 lb. at $5.90 Direct labor 1,300 hrs. at $16.50 1,330 hrs. at $16.80 Factory overhead Rates per direct labor hr., based on 100% of normal capacity...
Direct Materials, Direct Labor, and Factory Overhead Cost Variance Analysis Mackinaw Inc. processes a base chemical...
Direct Materials, Direct Labor, and Factory Overhead Cost Variance Analysis Mackinaw Inc. processes a base chemical into plastic. Standard costs and actual costs for direct materials, direct labor, and factory overhead incurred for the manufacture of 74,000 units of product were as follows: Standard Costs Actual Costs Direct materials 214,600 lbs. at $5.00 212,500 lbs. at $4.80 Direct labor 18,500 hrs. at $17.70 18,930 hrs. at $17.90 Factory overhead Rates per direct labor hr., based on 100% of normal capacity...
Direct Materials, Direct Labor, and Factory Overhead Cost Variance Analysis Mackinaw Inc. processes a base chemical...
Direct Materials, Direct Labor, and Factory Overhead Cost Variance Analysis Mackinaw Inc. processes a base chemical into plastic. Standard costs and actual costs for direct materials, direct labor, and factory overhead incurred for the manufacture of 70,000 units of product were as follows: Standard Costs Actual Costs Direct materials 217,000 lbs. at $5.80 214,800 lbs. at $5.70 Direct labor 17,500 hrs. at $17.20 17,900 hrs. at $17.50 Factory overhead Rates per direct labor hr., based on 100% of normal capacity...
#9 Direct Materials, Direct Labor, and Factory Overhead Cost Variance Analysis Mackinaw Inc. processes a base...
#9 Direct Materials, Direct Labor, and Factory Overhead Cost Variance Analysis Mackinaw Inc. processes a base chemical into plastic. Standard costs and actual costs for direct materials, direct labor, and factory overhead incurred for the manufacture of 74,000 units of product were as follows: Standard Costs Actual Costs Direct materials 185,000 lbs. at $5.20 183,200 lbs. at $5.10 Direct labor 18,500 hrs. at $16.90 18,930 hrs. at $17.30 Factory overhead Rates per direct labor hr., based on 100% of normal...
Mackinaw Inc. processes a base chemical into plastic. Standard costs and actual costs for direct materials,...
Mackinaw Inc. processes a base chemical into plastic. Standard costs and actual costs for direct materials, direct labor, and factory overhead incurred for the manufacture of 74,000 units of product were as follows: Standard Costs Actual Costs Direct materials 229,400 lbs. at $5.60 227,100 lbs. at $5.50 Direct labor 18,500 hrs. at $18.30 18,930 hrs. at $18.50 Factory overhead Rates per direct labor hr., based on 100% of normal capacity of 19,310 direct labor hrs.: Variable cost, $3.70 $67,770 variable...
r Direct Materials, Direct Labor, and Factory Overhead Cost Variance Analysis Road Gripper Tire Co. manufactures...
r Direct Materials, Direct Labor, and Factory Overhead Cost Variance Analysis Road Gripper Tire Co. manufactures automobile tires. Standard costs and actual costs for direct materials, direct labor, and factory overhead incurred for the manufacture of 4,160 tires were as follows: Standard Costs Actual Costs Direct materials 100,000 lbs. at $6.40 101,000 lbs. at $6.50 Direct labor 2,080 hrs. at $15.75 2,000 hrs. at $15.40 Factory overhead Rates per direct labor hr., based on 100% of normal capacity of 2,000...
Direct Materials, Direct Labor, and Reports budgeted and actual costs for variable and fixed factory overhead...
Direct Materials, Direct Labor, and Reports budgeted and actual costs for variable and fixed factory overhead along with the related controllable and volume variances.Factory Overhead Cost Variance Analysis Mackinaw Inc. processes a base chemical into plastic. A detailed estimate of what a product should cost.Standard costs and actual costs for direct materials, direct labor, and factory overhead incurred for the manufacture of 6,800 units of product were as follows: Standard Costs Actual Costs Direct materials 8,800 lb. at $4.90 8,700...
Factory Overhead Cost Variances The following data relate to factory overhead cost for the production of...
Factory Overhead Cost Variances The following data relate to factory overhead cost for the production of 3,000 computers: Actual: Variable factory overhead $122,200 Fixed factory overhead 35,000 Standard: 3,000 hrs. at $49 147,000 If productive capacity of 100% was 5,000 hours and the total factory overhead cost budgeted at the level of 3,000 standard hours was $161,000, determine the variable factory overhead controllable variance, fixed factory overhead volume variance, and total factory overhead cost variance. The fixed factory overhead rate...
ADVERTISEMENT
Need Online Homework Help?

Get Answers For Free
Most questions answered within 1 hours.

Ask a Question
ADVERTISEMENT
Active Questions
  • Statistics Discussion: The accuracy of a forecasting technique is evaluated especially using the MSE (mean squared...
    asked 36 minutes ago
  • If the U.S. government manages to close a recessionary gap and achieve potential GDP with fiscal...
    asked 40 minutes ago
  • A block with mass 10kg is on a ramp angled at 20 degrees above the horizontal,...
    asked 41 minutes ago
  • I have a sample of 31 7thgrade girls who took an IQ test.  I calculated the sample...
    asked 48 minutes ago
  • A researcher wishes to estimate the proportion of adults who have​ high-speed Internet access. What size...
    asked 48 minutes ago
  • Brick column in the external corridor of a house, with section size of 440 mm X520...
    asked 49 minutes ago
  • 17.                             Mel has a(n) __________ lien on Ellen’s car after he replaced her clutch. The lien.
    asked 56 minutes ago
  • Jackson Company engaged in the following investment transactions during the current year. Feb 17,Purchased  430 shares of...
    asked 1 hour ago
  • When might discrimination in the workplace be justified? Might discrimination on the basis of gender or...
    asked 1 hour ago
  • The strength grade of materials used for brick masonry at a certain site is as follows:...
    asked 1 hour ago
  • Show (prove), from the original definition of the integers, that subtraction of integers is well defined....
    asked 1 hour ago
  • How is polarity of a "bond" different than polarity of a "molecule?" What makes a particular...
    asked 1 hour ago